I don't know how this slipped my attention, but this company is only trading at 5x earnings, which is CRAZY cheap for a player in this sector. Only 300 million in debt, almost 3 billion in cash. For once, CNBC actually provided some really good insight via one of their analysts.

And as an added bonus, they make the best platter drives. Good enough for me. I'm in.

thoughts on WDC?

i thought it was a good pick last month at @ around $30... picked up some more a couple days ago in the low 27's...

but this thing just keeps on dropping.. everywhere i read analysts say its a good pick trading a low P/E etc

I picked up some JAN 31 puts. WDC is up 2% going into earnings which are after the market close. If the numbers miss, the puts should pay off nicely. This is a high risk gamble, so don't say I didn't warn you.

wow just wow i cant believe they bought Hitachi's business... amazing really  .. H gets 10% in WDC.

They now control 70-80% of the HDD market. - Seagate is the rest.,...

 

 

You guys think this is going to start climbing back up?

Natural disasters continue to plague Asian-based technology vendors this year, with extensive flooding in Thailand presenting the latest challenge for the consumer-electronics industry. Vendors including Western Digital and Microsemi have been forced to halt production.

Does not seem to be affecting the price much

 

+3% and rallying with the rest of tech

well i just got that.. so id give it a few days to let the news pass around, and i assume it will start declining more towards the 4Q

Earnings 1.08 beat the estimate. 

 

Nvm, the current quarter estimate is negative...

Edited by ibuddler - 10/19/11 at 6:27pm

 

Western Digital shares climb 7% on new outlook

http://www.marketwatch.com/story/western-digital-shares-climb-7-on-new-outlook-2012-01-24

SAN FRANCISCO (MarketWatch) -- Western Digital Corp. WDC +7.29% shares on Tuesday rose more than 7% to $37.35 on upbeat reaction to the computer hard-disk drive maker's quarterly report and outlook. Late Monday, Western Digital reported fiscal second-quarter results that were down from a year ago, but its sales still exceeded Wall Street analysts' forecasts. Additionally, the company gave a fiscal third-quarter outlook that topped analysts' estimates, and relieved some concerns about the impact of last fall's flooding in Thailand on Western Digital's business operations. Needham & Co. analyst Richard Kugele raised his rating on Western Digital to buy from hold and set a $41-a-share price target on the stock.

 

WESTERN DIGITAL (WDC) POSTS Q3. BOA/MERRILL DOWNGRADES TO NEUTRAL FROM BUY
1 days 6 hours 3 minutes ago - Standard & Poor's
Analyst Scott Craig tells salesforce WDC reported significantly better-than-expected Q3 EPS at $2.52 vs. his /Street $1.60/$1.55, driven by revenue, margin. Says guidance was disappointing (EPS of $2.35-$2.55 vs. his/Street prior $2.67/2.30) and commentary pointed to softer demand than expected going forward, at current/elevated ASP levels, and some pricing concessions. Says it appears HDD industry can't have it both ways for much longer -- pricing/margins at high levels, and expected strong demand, with assumed channel inventory refill. Cuts $54 target to $46. B.Brodie

S&P REITERATES BUY OPINION ON SHARES OF WESTERN DIGITAL
1 days 4 hours 45 minutes ago - Standard & Poor's
Mar-Q EPS of $2.52, vs. $0.62, beats our $1.40 estimate. Sales rose 35% to $3.0B, driven by a 51% increase in average selling prices. Even though we project lower prices as the industry ramps up production, we think prices will remain at elevated levels due to pent-up demand and industry consolidation. We think WDC will benefit from the acquisition of Hitachi's disk drive business, although potential cost savings will not likely occur immediately. We raise our FY 12 (Jun.) EPS forecast by $1.91 to $7.65, FY 13's by $2.51 to $8.27, and our target price by $6 to $50.

Western Digital (WDC) Loses 11.6% on Pricing Concerns
1 days 3 hours 17 minutes ago - FreshBrewedMedia via Comtex
Western Digital (NYSE: WDC) plunged after the company said the prices for its products are lower in the current quarter than they were in the prior period. A June 43/45 Out of The Money Bear-Call Credit Spread looks like an attractive way to play WDC today. This strategy aims for a return of 16.28% and WDC is 10% out of the money. Recent support for this stock has been demonstrated near $42.82 while resistance has been around $45.08. Western Digital is trading today at $38.94, down $5.16 (-11.75%) from yesterdayaEUR(TM)s close. The stock began the day trading at $38.75 and has moved between $37.41 and $39.46. Recent technical indicators for the stock are bullish and Standard & PooraEUR(TM)s gives WDC a positive 4 STARS (out of 5) buy.

big gap down...but 37 supp holds